FRANCE: LVMH - Strong Turnover Growth Continues in Third Quarter 2000: +35%
Sales growth, already very strong in the first half, continued during the third quarter of the year. The third quarter of 1999, used as a basis for comparison, was already up 31% compared to 1998. September sales reached an absolute record level.
Over the first nine months of the year, turnover has increased by 38% to reach 7,894 million Euros.
All of the business divisions, with the exception of champagne, have contributed to this very significant turnover growth, visible in all geographic zones.
In million of Euros 3rd quarter 9 months
2000 1999 Growth 2000 1999 Growth
Champagne & Cognac 569 599 - 5% 1,439 1,473 - 2%
Fashion & Leather Goods 812 555 +46% 2,285 1,588 +44%
Fragrances & Cosmetics 499 430 +16% 1,400 1,168 +20%
Watch & Jewelry 157 - - 427 - -
Selective retailing 810 531 +52% 2,274 1,472 +55%
Other activities 15 11 - 69 24 -
Total 2,862 2,126 +35% 7,894 5,725 +38%
-- Progress in Champagne sales is in line with our expectations.
Demand was exceptionally high in the first nine months of 1999 due
to the pre-millennium demand. A normal seasonal trend for
champagne is anticipated in the fourth quarter. The situation
differs according to geographic zones. Growth relays (USA, Japan,
Asia) record a high level of activity. Excellent weather
conditions have guaranteed a very good harvest. Cognac Hennessy
sales are up considerably, with very strong volume growth for VSOP
and XO, particularly in American and Asian markets (China, Taiwan
and Korea). In Japan, Hennessy Classique continues its
-- Growth in the Fashion & Leather Goods business group continues to
be very consistent, with sales at Louis Vuitton up by 38%. The
distribution network continues to grow, now numbering 276 stores,
19 of them global stores, the last one being opened in Seoul. A
first store was opened in Sweden. Other brands - Celine, Loewe,
Kenzo and Givenchy - have registered double digit growth and the
performance of Fendi has been excellent.
-- Sales growth in the Fragrances & Cosmetics business group, at 16%,
is ahead of the market average. J'Adore by Dior, continues to be
successful and Mahora by Guerlain is being introduced
progressively into a number of countries. Both Hot Couture by
Givenchy and Flower by Kenzo have had very promising launches and
our brands continue to grow extremely well. The Group has
strengthened its position in the US with the acquisition of
another emerging brand, Fresh, which specializes in products made
from natural ingredients.
-- The Watch & Jewelry business group is still developing extremely
well, with particularly strong performances from TAG Heuer in
Europe, Asia and the US. The new chronograph Monza model has met
with a very favorable reception and Mihewi, the latest model from
Chaumet, has been officially launched in Paris.
-- Turnover in the Selective Retailing business group is up by 52%.
The opening of a new DFS Galleria in Union Square (San Francisco),
which is the first DFS Galleria in North America, brings the total
number of DFS Gallerias to 13. The Sephora store network is
developing rapidly in Europe, with 320 stores at the end of
September. Sephora now has 62 stores in the US with an increasing
customer awareness of Sephora in the key markets of New York,
South Florida and the "Sun Belt". Sephora has now 6 stores in
Demand for the Group's products remains very strong in all geographical markets. These excellent achievements testify to the success of LVMH's strategy. The strong portfolio of leading brands, global distribution network, relentless commitment to innovation and talented executive and creative teams assure strong consistent growth for the LVMH Group.
LVMH Moet Hennessy Louis Vuitton, the world's leading luxury products group, is represented in Wines and Spirits by a portfolio of brands that includes Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Krug, Pommery, Chateau d'Yquem, Chandon, Hennessy and Hine. The Fashion and Leather Goods business group includes Louis Vuitton, Celine, Loewe, Kenzo, Givenchy, Christian Lacroix, Fendi and Pucci. LVMH is also present in the Fragrances and Cosmetics sector with Parfums Christian Dior, Guerlain, Givenchy and Kenzo, and has recently acquired six promising cosmetic companies, Bliss, Hard Candy, BeneFit Cosmetics, Urban Decay, Make Up For Ever and Fresh. LVMH is active in selective retailing through DFS, Sephora, and Le Bon Marche. The Group has established a Watch and Jewelry business group comprising TAG Heuer, Ebel, Chaumet, Zenith, Fred, as well as Omas, the prestigious Italian writing instruments company.
Phillips, one of the world's largest auction houses, which has recently teamed up with L'Etude Tajan, also belongs to the LVMH group. Connaissance des Arts and Art & Auction Magazine, two specialized publications, have recently joined the Group.
LVMH has recently launched Sephora.com and eluxury, the authoritative online source for luxury goods and services on the Internet.
LVMH Moet Hennessy Louis Vuitton ordinary shares, traded on the Paris Stock Exchange, may be accessed on the Reuter Equities 2000 Service under LVMH.PA, on Quotron under LVMHF.EU, and on Bloomberg under MC FP. Its ADRs, each equal to one-fifth of an ordinary share, trade on the NASDAQ National Market System in the US.
Additional information on LVMH may be found on the company's website, www.lvmh.com
"Certain information included in this release is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its wines and spirits, fashion and leather goods, fragrances and cosmetics, watches, and selective retailing activities, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses.
Forward-looking statements with regard to the Company's businesses involve a number of important factors that are subject to change, as are mentioned under "Risk Factors" in the Company's Form 20-F for the year ended December 31, 1999, which is on file with the United States Securities and Exchange Commission."
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